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Life insurance details matter in a divorce

On Behalf of | Mar 18, 2020 | Divorce

Divorce consists of various issues large and small. It is a natural tendency to focus on the bigger issues while not paying much attention to things that are considered minor details. This is true in the area of life insurance. Many people opt for a standard solution that does not take into account their own situation. This is a mistake that can be avoided.

People may select an amount of required coverage without much consideration about whether the total is right for them. They need to consider their lifestyle and the costs of raising their children until they are adults before putting an amount down on paper. The last thing that they want is to need the money if the insured parent dies and it is not enough.

It may also become more difficult to obtain insurance in the future as a policy renewal would depend on the current health of the insured. The next policy would get more expensive because the cost of insurance will increase as the insured gets older. If the divorce agreement requires a high amount of coverage, it could become prohibitively expensive in the future and become a burden on one or both spouses. Many people overlook these considerations in a divorce and only learn about problems as they arise.

In order to become aware of details such as these during a divorce, an individual may consult with a family law attorney. They might learn different solutions for handling things such as life insurance in the divorce agreement. In any event, the individual might become better informed about what things beyond the major issues need to be addressed in detail now. The divorce agreement is perhaps the last time where parties would be able to settle these matters without litigation in the future.

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